Taxing light bulbs - that's a bright idea
Read the article Bright idea and then answer the questions below. You can either read the article in the window below or you can follow the previous link to read the article in a separate window.
You may also like to read the following article:
Question 1
Explain, with reference to external costs and external benefits, why campaigners argue for a tax on incandescent light bulbs.
Question 2
Using diagrams, as appropriate, show the impact of a tax on incandescent light bulbs on (a) the market for incandescent light bulbs and (b) the market for energy efficient bulbs.
Question 3
Evaluate two further policies that governments could adopt to reduce carbon emissions resulting from energy use.